iloveoptions, Thanks for the detailed reply. I appreciate the rocket science of what you do and I could not begin to comprehend it at my level...
LOL. That's what some of us call monkey math (g) I'm not sure what that means. A $50 strike or $5,000 in premium received? Either way, if...
Huh? Assuming OTM puts, if the margin requirement is 20% of the strike, do you really think that the premium received is going to exceed the...
iloveoptions, Let's suppose I'm long straddles and I'm gamma scalping against it. If IV increased, would you ever sell an OTM option against...
I don't think that's a good example because you're using different strikes for the long call. It would be more appropriate if both positions were...
You are mixing and matching two concepts and that's very confuzzling. They need to be looked at separately. Why would someone naked short put...
As mentioned, some brokers allow contingency orders on options. But that's no guarantee that you get a fill at that price. each strategy has...
The idea is to see everything that you need to see on one page. Enter the prices and deltas and get back the net delta (including stk buys and...
I have a direct line to Miss Cleo's jail cell. She predicts the future :) Seriously, I input the variables into an analyzer calculator/program...
I have limited experience with delta neutral trading (long straddles as well as ratioed calls against stock). I've worked a few positions and the...
AZD, It's a simple short term volatility play. No more, no less. If something causes IV to inflate, you get hammered and just have to take...
The closing price is the last trade which could have occurred at any time - near the close, this morning, yesterday. It's not reflective of...
Pizza boy! I must going senile. Coulda sworn I posted this earlier but maybe I just Previewed it (sheepish grin). Here's my double ratioed...
And sometimes, not waiting is worse. You watch the price and when it's acceptable, you take it. Skip the 20/20 hindisght. Sometimes, EA plays...
Hey Pizza Boy! (g). Since we picked up the idea from Born29 on Yahoo (IV Trader here), I have become a big fan of ratioed double reverse...
I have a similar question. Assume no change in IV. If I expect an "X" pt move, I can calculate what the options will be worth "Y" days from now....
Think twice about going out an extra month on the longs. If there's a similar amount of IV contraction on the 2nd and 3rd month out, you'll risk...
Regardless of the move, near month IV is going to contract. A stock drop isn't going to hold the IV up at the pre EA level. Either way, one...
Assuming that there's no mispricing, they are equal on a 1:1 basis since all components are priced in. The margin requirements are different....
Phil, Thanks for the detailed reply and including a real world example. Everything you wrote made sense. LOL... meaning, I understood it!...
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